Annual Forecast for USD/JPY (2021): Price Is Expected to Resume Downtrend in the First Quarter

Key Resistance Levels: 111.000, 112.000, 113.000
Key Support Levels: 104.000, 103.000, 102.000

The USD/JPY pair has been falling since January. The downward move has been consistent. For example, in January the pair has an opening balance of 108.62. The opening balance has fallen to level 103.66 at the time of writing. There is every indication that the downtrend will continue.

USD/JPY Price Predictions: Monthly Chart
In January and February, the candlesticks have long wicks indicating that there is strong selling pressure at a higher price level. This bearish pressure has pushed the Yen down. Presently, the Yen is at level 34 of the Relative Strength index period 14. The pair tends to fall because it is below the centerline 50.

USD/JPY Price Predictions: Weekly Chart
On the weekly chart, the price is making a series of lower lows and lower highs. Presently the pair is below the 25% range of the daily stochastic. It indicates that the market is now in the oversold region.

Conclusion
In 2020, the pair has been on a downward move to level 103.66. The market will gradually rise as we enter the New Year. By January, USD/JPY will reach a high of level 104.11. Just like in 2020, the downtrend will resume. In other words, the pair will fall from level 104.11 to level 99.50 in December 2021.


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